Pension reform proposals could sway voters

Pensions could yet prove to be a decisive issue in the upcoming election with nearly nine in ten working people (88%) wanting whichever party wins the election to do more to help people save for retirement, according to new research. Three out of four workers (75%) are more likely to vote for a political party that reforms DC pensions, according to research from workplace pension scheme provider TPT Retirement Solutions. Almost six in ten (57%) workers worry they are not saving enough for retirement and 45% believe many people could face pension poverty if the system isn't reformed. Some 96% support reforms to increase retirement savings such as expanding auto-enrolment and increasing minimum contributions. The research underlined how much workers want the next government to reform pensions. Some 71% believe politicians are responsible for ensuring access to adequate pensions. More than four in ten working people (44%) also favour maintaining the triple lock on the state pension to ensure adequate retirement incomes. TPT’s study also found that many people struggle to understand their pensions and subsequently find it difficult to make retirement decisions. One in three workers (30%) believe pensions are too complicated and 96% would support policies to make pensions simpler to understand. So, how can the industry make pensions easier to understand? One popular option (59%) to simplify pensions is to encourage schemes to introduce a default decumulation option to make it easier for people to choose how to use their pension pot when they retire. Similarly, over half (55%) are behind proposals for a pension pot for life system, to make it easier for people to keep track of their pension savings. Meanwhile the tax system's complexity is discouraging people from investing more for their retirement. 91% of workers support tax reforms to make it easier for people to invest more in their pensions. Introducing a tax-efficient form of sidecar savings is one option that could appeal to 36% of workers. More than four in ten workers (44%) also oppose the return of the lifetime allowance. David Lane, chief executive of TPT Retirement Solutions, said: “Currently, most people are not saving enough for retirement and many struggle with retirement decisions. Any political party that tackles these issues could be rewarded at the ballot box.”

Pension reform proposals could sway voters

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